Fellow Millennials, lets buy homes so we can build wealth

Fellow Millennials, lets buy homes so we can build wealthFellow Millennials, lets buy homes so we can build wealthBuying a house is probably one of the biggest purchases we will ever make in life. Its a huge commitment (hello,30-year mortgage), can cost a lot of money (a 20% down payment is someseriouscash) and, if something goes wrong, theres no landlord to call for help. No wonder Millennials arent buying homes.Plus, beyond paying down mountains ofstudent debt, were working jobs that go beyond the 9-to-5 and are saving up any extra cash so we can travel. We dont have (or want) time to spend mowing the lawn or organizing the basement, nor do we feel the need to spend ur hard-earned cash on paying downanotherloan - at least not yet.Bankrates recent survey foundthat Americans believethe ideal age at which to own a first home is 28, with older generations stating that 26 is even better for the financial milestone. However, according to thelatest studyby the Urban Institute, only 37% o f Millennials between the ages of 25 and 34 owned homes in 2015. Thats about 8 percentage points lower than the number of Gen Xers and baby boomers who owned homes at the same age.We may not all be buying homes, but some Millennials are, and its a smart financial moveLaura Shakespeare, 30, bought her first home in Madison, Wisconsin when she was 23 years old, just two years after she graduated college.I was making good money with my first job out of college and the city is growing, Shakespeare told Swirled. I thought it was a good investment opportunity.Shakespeare realizes shes not in the majority when it comes to Millennial home ownership, but she also just couldnt reisepass up the chance to buy a house in a growing market. After two years of renting, though, the down payment was still a bit of a struggle.I actually borrowed some money from my parents specifically for the down payment, Shakespeare said. I realize that isnt an option for everyone, but I think I probably wouldnt hav e been able to buy for a few more years without that help.Shakespeare was able to buy a house on her own, but others may be waiting to do it once theyre in a committed relationship - like, you know, a marriage.According to the same study from the Urban Institute, being married increases the chances of buying a home by 18 percentage points. The average age of marriage has increased to 27 for women and 29 for men, according to thePEW Research Center, so it may be no surprise that the average age of homeownership has also increased over time.Okay, so we may not be getting married, and we may not all be buying homes, but what about the overall impact of this on our financial health? Thats what we need to consider.Homeownership can boost wealthOwning a home is one of the easiest and fastest ways to build wealth and grow your net worth, which determines your financial health.Your net worth is the total amount that your assets are worth after you subtract your liabilities. Assets include the amounts you have in any checking, savings or investment accounts, the market value of your car, the value of your home and more. Liabilities include things like the debt you owe on student loans, car loans, mortgages and any other debts you have yet to repay. If the total amount of your assets exceeds your liabilities, you have a positive net worth if its the opposite, then your net worth is negative. If you want to build your net worth and overall wealth, youll need assets that are more valuable and debts that are low or nonexistent.According to theFederal Reserves Survey of Consumer Finances, the average homeowner has a household wealth of $231,420. Now you might be thinking that youll never be able to achieve that kind of wealth with all of the student loans you still need to pay back or based on the salary youre currently making, so youll just keep renting. However, if you keep renting, your wealth still wont even come close to that of a homeowners. The same survey shows tha t the average renter has a household wealth of just $5,200 - thats a pretty big difference.Owning a home comes with some major benefitsIf you plan to own a home one day, now might be the time to take a good hard look at your finances and determine when you could potentially buy that house. Even if it seems too expensive right now, consider the money you spend on rent - youre never going to get that back. From a wealth standpoint, this isan important factor to consider.Ive been renting for eight years, Alexandra Israel, 30, told Swirled. My apartment is in SoHo. And there are major drawbacks - renting feels like youre wasting money on something thats really only temporary. Iwould love to own some type of property one day.And Israel is right. The financial benefits that come with owning a home can really make a difference in the long run, even if youre coughing up thousands of dollars in the beginning. Shakespeare believes that she will really get a return on her investment in the f uture - which will also add to her wealth and net worth substantially.There are tax benefits, and once you get beyond that down payment hurdle, the monthly payments are a breeze, Shakespeare said. I have always had a roommate that I charge rent as well, so my monthly payments are low I also love being able to feel like the space is mine. I renovated much of the home since it was largely untouched since 1992 - something you cant really do when renting.Im excited to see the return on all my investments when I eventually do sell.Consider all thepros and cons of renting and buying a homebefore deciding what is best for your lifestyle. Plus, there areseveral types of mortgagesto choose from, so find one that fits your financial situation best. Keep saving your money andstick to a budget, too.Whatever you do, though, dont let your dream of owning a home slip away - its a financial goal that is possible for everyone and seriously smart when building wealth.This post was originally publi shed onSwirled.comin the Thrive section, which covers valuable career and personal finance content for Millennials.